Michigan’s NCAA Punishment Hits Hard in the Wallet but Leaves Program Largely Intact
The NCAA has finally closed the book on its long-running investigation into Michigan football’s infamous sign-stealing scandal. While the financial penalties will sting, many around college sports expected the punishment to be far more damaging. Instead, Michigan’s path forward remains mostly unobstructed on the field, with the biggest consequence being a significant financial hit to the program’s coffers.
The ruling, delivered by the NCAA’s Committee on Infractions (COI), comes nearly two years after allegations first surfaced that Michigan was running an elaborate scheme to scout opponents improperly. At the center of it all was former staffer Connor Stalions, who allegedly orchestrated a plan that spanned multiple seasons and drew national headlines.
According to the COI, Michigan’s violations occurred during the 2021, 2022, and 2023 campaigns — all years when former head coach Jim Harbaugh was still in charge. The panel said there was “overwhelming evidence” of an impermissible scouting operation and further pointed to recruiting violations in 2023. Yet, despite those findings, the sanctions stopped short of what many rival fans and even some NCAA insiders thought was inevitable: a postseason ban.
What Michigan Faces
Instead of being barred from the playoffs, the Wolverines will pay dearly in other ways. The NCAA ordered the university to forfeit its postseason revenue over the next two years, a financial penalty expected to total roughly $20 million. The program was also hit with a $50,000 fine, plus an additional forfeiture equaling 10 percent of both its football budget and its scholarship allotment for the season. Those percentages, while small on paper, add up quickly for a program of Michigan’s size and success.
In simple terms, Michigan football’s wallet takes the heaviest blow. But its ability to compete for championships remains fully intact. No wins from past seasons will be vacated, meaning the Wolverines’ accomplishments under Harbaugh officially remain in the record books.
That ruling reflects a balancing act by the NCAA. The COI acknowledged it had enough evidence to justify a multiyear postseason ban but ultimately argued that such a punishment would unfairly harm current players who had no role in the violations. The panel specifically pointed out that the guilty parties are no longer employed by the program.
Sherrone Moore’s Punishment
Still, not everyone currently in Ann Arbor escaped unscathed. Current head coach Sherrone Moore was handed an additional one-game suspension, to be served in 2026. This comes on top of the two-game suspension Michigan had already self-imposed on him this season in response to the scandal.
More significantly, Moore received a two-year show-cause penalty. In NCAA terms, a show-cause order is a kind of scarlet letter: if Michigan were to fire him, any other program hoping to hire Moore would need to convince the NCAA that he should be allowed to coach again. For practical purposes, such a burden makes him nearly untouchable until the order expires.
For now, Moore remains safe in Ann Arbor, but the ruling underscores just how precarious his situation could become if Michigan’s administration decided to make a change.
Harbaugh’s Show-Cause Order
The NCAA also came down on Jim Harbaugh, though in a way that will do little to affect his immediate future. The former Wolverines coach was hit with a staggering 10-year show-cause penalty. Added to a previous four-year sanction already in place, Harbaugh is now effectively banned from college coaching until 2038.
Yet Harbaugh has long since left the college ranks behind, returning to the NFL to lead the Los Angeles Chargers. His focus is on unlocking quarterback Justin Herbert’s full potential and pushing the franchise into deep postseason contention. Because of that, the NCAA’s decision carries little real consequence for him personally.
Still, the optics matter. On paper, Harbaugh’s record at Michigan remains intact, but his reputation — and by extension, Michigan’s reputation — takes another hit. The program is now officially branded by the NCAA as one that knowingly engaged in rule-breaking, and Harbaugh is permanently tied to the scandal in the historical record.
More About Reputation Than Reality
At its core, the punishment leaves Michigan with a tarnished image and a bruised budget. But on the field, the team faces no real obstacles to competing at the highest level. Rival programs may argue that Michigan got off lightly, especially considering the COI itself admitted a postseason ban would have been justified.
For Michigan, the ruling is simultaneously damaging and relieving. The university must weather two years of lost postseason revenue, a penalty that could disrupt not only athletics but also ripple across the school’s broader financial ecosystem. Still, by avoiding sanctions that affect player eligibility or team participation, the Wolverines keep their championship ambitions alive.
The Players’ Role
Perhaps most importantly, the NCAA avoided placing blame on the athletes themselves. The COI stated clearly that players had no reason to suspect their scouting reports were the product of illicit sideline filming. After all, athletes depend on the staff for information and strategy — it’s unreasonable to expect them to question how that information is obtained.
That distinction matters. It ensures that current and future Wolverines are not punished for the mistakes of coaches and staff who are long gone. But it also leaves open the question of accountability. How could a program of Michigan’s stature, with so many checks and balances, allow such a scheme to take place unchecked for multiple years?
Lessons Moving Forward
The NCAA’s decision reflects a broader challenge in college sports governance: how to hold programs accountable without punishing those uninvolved. In this case, the Wolverines avoided the harshest penalties but were still labeled as a program that benefited from unfair practices.
Critics argue that the ruling sends a mixed message. On one hand, the NCAA recognized serious violations. On the other, it allowed Michigan to retain its championships, avoid postseason bans, and essentially move forward with only financial scars. For schools considering how far they can push the envelope, the Michigan case may serve as both a warning and a loophole.
For now, though, Michigan keeps its eyes on the field. Sherrone Moore must carry the program past the shadow of Harbaugh and Stalions, proving that the Wolverines can win clean. The punishment may sting financially, but the test of credibility and integrity could prove to be the real challenge ahead.
